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BALANCE SHEETS COMPONENTS
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BALANCE SHEETS COMPONENTS BALANCE SHEETS COMPONENTS
Inventory
Inventory as of June 30, 2023 and December 31, 2022 was as follows (in thousands):
June 30,
2023		December 31,
2022
Raw materials$358,199 $464,731 
Work in progress46,159 34,311 
Finished goods
445,423 335,359 
Total Inventory$849,781 $834,401 
Inventory was comprised of raw materials, work in progress related to the production of vehicles for sale and finished goods inventory including new vehicles available for sale, vehicles in transit to fulfill customer orders, and internally used vehicles which the Company intends to sell. The Company recorded write-downs of $295.0 million and $522.0 million, respectively, for the three and six months ended June 30, 2023, and $81.7 million and $178.1 million, respectively, for the same periods in the prior year, to reduce our inventories to their net realizable values, for any excess or obsolete inventories, and losses from firm purchase commitments.
Property, plant and equipment, net
Property, plant and equipment, net as of June 30, 2023 and December 31, 2022 was as follows (in thousands):
June 30,
2023		December 31,
2022
Land and land improvements$68,373 $64,677 
Building and improvements251,354 197,406 
Machinery, Tooling and Vehicles795,171 743,006 
Computer equipment and software67,270 48,899 
Leasehold improvements207,571 182,904 
Furniture and fixtures31,978 27,803 
Finance leases97,924 97,992 
Construction in progress1,332,611 1,077,179 
Total Property, plant and equipment2,852,252 2,439,866 
Less: accumulated depreciation and amortization(377,688)(273,090)
Property, plant and equipment, net$2,474,564 $2,166,776 
Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset, installation of the asset, and bringing it to the location and the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the asset is completed and is ready for its intended use. Construction in progress consisted of the following (in thousands):
June 30,
2023		December 31,
2022
Machinery and tooling(1)
$694,757 $515,662 
Construction of AMP-1 and AMP-2(1)
618,681 526,720 
Leasehold improvements19,173 34,797 
Total construction in progress$1,332,611 $1,077,179 
(1) As of June 30, 2023 and December 31, 2022, $83.7 million and $33.3 million of capital expenditure support received from Ministry of Investment of Saudi Arabia (“MISA”) was recorded as a deduction to the AMP-2 construction in progress balance, respectively. See Note 15 “Related Party Transactions” for more information.
Depreciation and amortization expense was $55.4 million and $105.2 million, respectively, for the three and six months ended June 30, 2023, and $42.5 million and $80.7 million, respectively, for the same periods in the prior year. The amount of interest capitalized on construction in progress related to significant capital asset construction was $2.2 million and $4.0 million, respectively, for the three and six months ended June 30, 2023, and immaterial for the same periods in the prior year.
Other current liabilities
Other current liabilities as of June 30, 2023 and December 31, 2022 were as follows (in thousands):
June 30,
2023		December 31,
2022
Engineering, design, and testing accrual$47,498 $28,686 
Construction in progress174,273 167,462 
Accrued purchases(1)
63,907 157,162 
Retail leasehold improvements accrual6,956 9,099 
Third-party services accrual24,453 34,951 
Tooling liability17,416 21,714 
Short-term borrowings13,864 9,595 
Operating lease liabilities, current portion19,135 11,269 
Reserve for loss on firm commitments(2)
84,297 22,640 
Accrued warranty41,556 10,464 
Other current liabilities173,501 161,525 
Total Other current liabilities$666,856 $634,567 
(1) Primarily represent accruals for inventory related purchases and transportation charges that had not been invoiced.
(2) Primarily represent reserve for losses on firm inventory purchase commitments.
Other long-term liabilities
Other long-term liabilities as of June 30, 2023 and December 31, 2022 were as follows (in thousands):
June 30,
2023		December 31,
2022
Operating lease liabilities, net of current portion$250,547 $243,843 
Other long-term liabilities(1)
106,299 134,369 
Total Other long-term liabilities$356,846 $378,212 
(1) As of June 30, 2023 and December 31, 2022, $13.6 million and $64.0 million of capital expenditure support received from MISA was recorded as deferred liability within other long-term liabilities, respectively. See Note 15 “Related Party Transactions” for more information.
Accrued warranty
Accrued warranty activities consisted of the following (in thousands):
Three Months Ended
June 30, 2023		Six Months Ended
June 30, 2023
Accrued warranty - beginning of period$25,875 $22,949 
Warranty costs incurred(11,570)(19,830)
Provision for warranty(1)
47,881 59,067 
Accrued warranty - end of period(2)
$62,186 $62,186 
(1) Accrued warranty balance as of June 30, 2023 included estimated costs related to the recalls identified and special campaigns to repair or replace items under warranties.
(2) Accrued warranty balance of $41.6 million and $20.6 million were recorded within other current liabilities and other long-term liabilities, respectively, on our condensed consolidated balance sheet as of June 30, 2023.